A model of gradual information disclosure

We study a dynamic game in which a financial expert seeks to optimize the utilization of her private information either by information disclosure to an investor or by self-use. The investor may be aligned or biased: an aligned investor always cooperates with the expert, whereas a biased investor may strategically betray the expert. We characterize the joint dynamics of the expert's information disclosure and the investor's type revelation and show that, by disclosing her information gradually, the expert can alleviate the hold-up effect exerted by the biased investor. Moreover, we show that the equilibrium of this game is unique. We also examine how the expert can further increase the value of her information by committing to a deadline or by committing to a particular schedule of information disclosure.